Trading update
Encore replay of conference call available until 20 June
2010
International dial in: +44 (0) 1452 55 00 00
UK Free Call dial in: 0800 953 1533
UK Local call dial in: 0845 245 5205
USA Free call dial in: 1866 247 4222
Encore replay access number: 81770700#
The Weir Group PLC ("Weir" or the "Group") today issues the
following update on trading in respect of the 22 weeks ended 4 June
2010. A separate announcement has also been issued today
regarding the Group's acquisition of Malaysia based Linatex for
US$200m (£138m)1. The Group is scheduled to announce its
interim results for the 26 weeks ending 2 July 2010 on 3 August
2010.
Trading for the 9 week period to 4 June has been stronger than
expected, especially at SPM and across the Minerals division.
Aftermarket orders have continued to exceed expectations and we are
starting to see a positive emerging trend in original equipment
orders. Order input for the 22 weeks was up 25% (Q1: 16%) against
the prior year period with aftermarket orders up 24% (Q1: 19%).
These trends, together with a positive benefit from foreign
exchange translation, means that we now expect profit before
intangibles amortisation and tax for the 26 weeks ending 2 July
2010 to be around £140m. In addition we now expect
profit for the second half of 2010 to be significantly ahead of
profit for the second half of 2009 in constant currency terms.
Divisional update
Minerals
Order input for the 22 weeks was up 27% (Q1: 30%) with original
equipment orders up 34% (Q1: 38%) reflecting the C$58m contract
award at our Canadian business as previously announced.
Excluding the effect of this award, order input was up 16% (Q1:
12%) with original equipment up 8% (Q1: broadly flat) reflecting
the first positive signs of enquiry conversion. Aftermarket orders
were up 22% which while lower than the 24% reported for the first
quarter still exceeded our expectations. This together with a
positive trend in original equipment orders means that we now
expect 2010 full year operating profits in constant currency terms
to be ahead of that achieved in 2009.
Oil & Gas
Order input for the 22 weeks was up 31% (Q1: 4%) with upstream
input up 96% (Q1: 74%) benefitting from continued high activity
levels in the North American shale gas markets. Aftermarket
sales have continued to be very strong and we are now also seeing
the first signs of a pick up in original equipment orders for
delivery through 2010. As a result of these more positive
trends we are now targeting 2010 full year SPM revenue of around
US$350m, an increase of 25% on our previous target. As
expected, downstream input is lower year on year.
Power & Industrial
Order input for the 22 weeks was in line with the prior year
period (Q1: down 16%) reflecting a number of Chinese nuclear
contract wins in the last 9 weeks. There has been no change
to our expectation of input, revenue and margin progression over
the full year.
Note: Order input is reported on a constant currency basis.
1 Exchange rate of £1 = US$ 1.45 at
closing in London on 11 June 2010
A conference call for analysts and investors will be held
at 8 a.m. (UK time) on Monday 14th June to discuss this
statement and the Linatex acquisition.
For dial-in details please contact Maitland on +44 (0)
207 379 5151
|
Contact details:
|
|
|
The Weir Group PLC
|
|
|
Helen Walker, Public Relations Manager
|
Tel. 0141 308 3739 (Mobile: 07789 032296)
|
|
Maitland
|
Tel. 020 7379 5151
|
|
Suzanne Bartch
|
(Mobile: 07769 710 335)
|
|
Rowan Brown
|
(Mobile: 07834 434 662)
|
Note to Editors: Print quality images are
available to download at http://www.newscast.co.uk
« All news items from 2010
